(By Balaseshan) McGraw-Hill Companies Inc. (NYSE: MHP) reported a 76% jump in earnings from continuing operations on higher revenue. However, the financial intelligence and education company guided fiscal 2013 below consensus.
Earnings from continuing operations for the fourth quarter were $190 million or $0.67 per share, up from $108 million or $0.37 per share last year.
The company said latest quarter continuing operations results excluded the pending sale of McGraw-Hill Education, which has been reclassified as a discontinued operation. Adjusted earnings per share (EPS) from continuing operations jumped 56% to $0.72.
Revenue climbed 22% to $1.226 billion.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.72 per share on revenue of $1.61 billion for the fourth quarter.
Revenue from Standard & Poor's Ratings Services soared 34%, driven by the continued low interest rate environment and elevated levels of refinancing activity. S&P Capital IQ revenue increased 8%.
S&P Dow Jones Indices revenue surged 38%, while revenue excluding Dow Jones Indexes rose 5%. Commodities & Commercial Markets revenue increased 9%.
For the fiscal 2013, the company projects adjusted EPS of $3.10 to $3.20, about a 15% increase, and revenue of high single-digit growth, while Street predicts EPS of $3.80 on revenue growth of 6.50.
On November 2012, McGraw-Hill has agreed to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC. Following the sale closing, expected in early 2013, the company will be renamed McGraw Hill Financial.
MHP closed Monday's regular session up 3.77% at $44.28. The stock has been trading between $42.02 and $58.62 for the past 52 weeks.